President Donald Trump confirmed Thursday that the federal government is working on a rescue deal for Spirit Airlines, and even suggested buying the struggling carrier outright.
“We’re thinking about doing it,” Trump told reporters at the White House. “Helping them out, meaning bailing them out. Or buying it. I think we just buy it. We’d be getting it virtually debt-free. There’s some good aircraft, some good assets. And when the price of oil goes down, sell it for a profit.”
Spirit was known to be in talks with the administration, but until Thursday no official on either side had suggested the federal government would purchase Spirit and operate it as a state asset.
Trump said he would make such a deal if Spirit agreed to “the right price.” He then suggested bringing in “someone who wants to run it” to turn the airline around.
Whatever form it ultimately takes, a rescue for Spirit aligns with the administration’s goals of saving American jobs and preserving competitiveness in key industries, the president continued.
“I’d love to be able to save those jobs,” he said. “I’d love to be able to save an airline. I like having a lot of airlines, so it’s competitive.”
Spirit was set to emerge from its second stint in bankruptcy protection some time this spring or summer, but surging jet fuel prices risk undoing much or all of the ultra-low-cost carrier’s progress. Reports circulating earlier this month suggested Spirit is looking at liquidation.
The Air Current broke the news late last week that Spirit had asked the administration for help. A later update from The Wall Street Journal said the White House is considering a rescue package worth up to $500 million in loans. In exchange, the federal government would own a part – though not the majority – of the airline.
Direct federal investments in private-sector companies are rare but not unheard of, especially for the current administration, which bought stakes in chipmaker Intel and mining and manufacturing company USA Rare Earth. But unlike Spirit, neither of those companies is in bankruptcy.
Unlike many other countries, the U.S. has never had a state-owned passenger airline.
